# SUNSwap V1 Trading volume Methodology

## 1. Overview

Trading volume is defined as the total value of trades executed on SUNSwap V1. This metric is utilized to evaluate the protocol's transactional activity and its capacity to generate trading fees and revenue. Swaps executed on SUNSwap V1 are captured, normalized, and valued in USD to represent the total economic throughput of the platform. The metric is calculated by aggregating individual swap events across all active liquidity pools associated with SUNSwap V1.

## 2. Data sources

- **Blockchain events**: `NewExchange` events from `Factory` contracts, and `TokenPurchase` and `TrxPurchase` events from `Exchange` contracts, covering Tron
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: SUNSwap V1 pool registration

- **Purpose**: Identify and register SUNSwap V1 liquidity pools and their associated assets.
- **Logic**: `NewExchange` events from `Factory` contracts are parsed to identify newly created exchange accounts. For each exchange, the pool address, the native asset (WTRX) address, and the paired asset address are extracted. A fixed fee tier of 0.3% is assigned to SUNSwap V1 pools. Asset decimals and symbols are mapped using asset metadata.
- **Key fields**: `exchange` (pool address), `token` (paired asset address), `decimals` (asset decimal precision), `symbol` (asset symbol)

### Component B: SUNSwap V1 trade extraction

- **Purpose**: Capture individual swap transactions executed on SUNSwap V1.
- **Logic**: `TokenPurchase` and `TrxPurchase` events from `Exchange` contracts are parsed. For `TokenPurchase` events, the incoming TRX amount (representing asset 0) and the outgoing token amount (representing asset 1) are extracted. For `TrxPurchase` events, the outgoing TRX amount (representing asset 0) and the incoming token amount (representing asset 1) are extracted. These events are joined with transaction data to identify the user address and transaction hash.
- **Key fields**: `block_timestamp` (transaction time), `transaction_hash` (transaction identifier), `log_index` (event position), `address` (pool address), `trx_sold` / `trx_bought` (TRX amounts), `tokens_sold` / `tokens_bought` (token amounts)

### Component C: Volume normalization and USD valuation

- **Purpose**: Normalize trade amounts by decimal precision and convert them to USD.
- **Logic**: Raw trade amounts for both assets in a pair are normalized by their respective decimal precisions. The normalized amounts are multiplied by end-of-day asset prices. To prevent valuation distortions from unpriced or highly volatile assets, the trading volume for each swap is valued at the lesser of the two legs (the minimum of the USD value of asset 0 and asset 1), except when one of the assets is classified as a tokenized stock.
- **Key fields**: `amount_0` (normalized asset 0 amount), `amount_1` (normalized asset 1 amount), `price_usd` (asset price in USD), `trading_volume` (valued swap amount)

### Component D: Daily aggregation

- **Purpose**: Aggregate trading volume to a daily granularity.
- **Logic**: The USD-denominated trading volumes are aggregated by day, chain, and product (`SUNSwap V1`).
- **Key fields**: `timestamp` (daily interval), `chain_id` (chain identifier), `product_id` (product identifier), `trading_volume` (aggregated daily volume)

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Total value of spot trades executed on the exchange.

Trading volume